Energy bills are still £53 higher despite cuts to green levies

Recent cuts to gas and electricity prices are far from cancelling out winter price rises

With npower today announcing that it would be cutting prices in line with government led cuts to green levies, each of the big six energy companies has now promised to lower energy bills.

Despite these cuts, new research from uSwitch shows that the average dual fuel energy bill is £53 higher than it was before energy companies raised their prices during the winter.

The news also means that there is now a £274 gap between the cheapest and most expensive energy plans on the market.

Supplier price hikes and drops

The average energy bill before the winter price rises was £1,212, a figure which rose to £1,281 after price rises, and will drop to *£1,264 once all price cuts are implemented.

Supplier

Pre-hike bill

Post-hike bill

Hike effective

Bill after levy reduction

Cut effective

Reduction for fixed and variable?

Holding prices?**

British Gas

£1,191

£1,306

23/11/2013

£1,265

1/1/2014

Yes

Yes until Summer 2015

EDF Energy

£1,190

£1,237

03/01/2014

£1,237

N/A

No

Yes until 2015

E.ON

£1,226

£1,240

18/01/2014

£1,240

N/A

No

No guarantee but says ‘likelihood has receded for next 18 months’ (Spring 2015)

npower

£1,220

£1,332

01/12/2013

£1,299

28/2/2014

No

Yes, until Spring 2015

ScottishPower

£1,230

£1,325

06/12/2013

£1,284

31/1/2014

Yes, in part***

Yes, until 2015

SSE

£1,211

£1,304

15/11/2013

£1,259

Mar-14

Yes

Yes, until Spring 2015

Average

£1,212

£1,291

£1,264

Source: uSwitch.com

Based on a medium user consuming 3,200 kWh of electricity and 13,500 kWh of gas on a standard dual fuel tariff, paying quarterly by cash and cheque, with bill sizes averaged across all regions. **Unless there are significant increases in wholesale costs. ***Those on a fixed price tariff paying more than standard tariff prices will see a reduction on 31st January.

‘Cuts are welcome, but simply skim the surface of the hikes’

Ann Robinson, director of consumer policy at uSwitch, said: “These cuts are welcome, but simply skim the surface of the hikes that went before them. The fact is that even once the decreases take effect consumers will still be left £53 out of pocket. Even more disappointing is that many won’t even get to feel the benefit this winter while some won’t get to feel the benefit at all.

“What is clear is that there is only so much the government has been able to do to help consumers – it’s now time for consumers to help themselves. There is £274 difference between the cheapest and most expensive tariffs on the market, which means there is significant scope for consumers to give themselves a real price cut by shopping around and particularly looking at what small suppliers have to offer.”

*Based on a medium user customer using 3,200 kWh of electricity and 13,500 kWh of gas, on a standard dual fuel plan, paying quarterly by cash or cheque with bill sizes averaged across the big six suppliers and all regions.

uSwitch Limited is authorised and regulated by the Financial Conduct Authority (FCA) under firm reference number 312850. You can check this on the Financial Services Register by visiting the FCA website.